Dec 30 2025
Management

Tech Trends 2026: How AI, Data and Security Are Reshaping Manufacturing

Manufacturers will look to artificial intelligence and automation to push their operations to the next level of production.

From software-defined factories to artificial intelligence (AI)-driven design, federated data architectures and human-robot collaboration, leading organizations are redefining how value is created across the industrial ecosystem.

According to IDC research, the manufacturers pulling ahead are those aligning technology investments with platform strategy, workforce transformation and resilient operations.

Jeffrey Hojlo, research vice president of future of industry ecosystems, innovation strategies and energy insights at IDC, outlines the trends executives should prioritize as they plan for the next phase of industrial innovation.

DIG DEEPER: Manufacturers must balance the convergence of IT and OT with security concerns.

Is 2026 the Year of the Software-Defined Factory?

More than 40% of manufacturers with production scheduling systems will upgrade to AI by 2026, and by 2029, 30% of factories will use centralized, software-defined platforms to run automation, according to IDC. These platforms replace fixed hardware with flexible software that allows manufacturers to adapt and optimize operations in real time.

The biggest challenge is architectural. “Disparate data sets and the inability to unify data across the manufacturing process chain often remains an issue due to subpar, old infrastructure,” Hojlo says.

Leading manufacturers address this by adopting scalable platforms that work across cloud, on-premises and edge environments, using digital threads and digital twins to improve collaboration, innovation and customer experience.

AI-Infused Production and Design Deliver Results

AI is reshaping how products move from concept to production. By 2028, 65% of G1000 manufacturers will use AI agents with design and simulation tools, according to IDC.

“It’s shrinking product development cycles, enabling faster, more accurate response to customer demand — particularly for customized and highly configured products,” Hojlo says.

Product development is a top priority for generative AI adoption because manufacturers want to improve early-stage design decisions by drawing on past product launches, customer feedback and quality data. Hojlo adds that generative design also presents significant opportunities to better align products with supply chain realities, increasing the likelihood of successful product launches.

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Agentic and Autonomous Data Management

By 2027, 40% of all OT data will be integrated into platforms and apps autonomously, thanks to the use of AI agents created specifically for certain data. This will push manufacturers to move away from centralized data models.

As manufacturers adopt agentic AI and federated data architectures, executives must reassess risk management and governance.

IDC found that the most important areas of risk to mitigate across multiple locations and with partners across your ecosystems are:

  • Cybersecurity of collaboration platforms
  • Environmental sustainability
  • Supply chain execution and logistics
  • Product/service quality issues
  • Regulatory compliance changes

Hojlo points to new approaches that help manufacturers confirm the accuracy of both external data and AI-generated insights by validating results against trusted internal data. Overcoming skepticism and building trust in AI guidance remains critical.

WATCH: Discover the security issues demanding attention in 2026.

Human-Robot Collaboration and Workforce Transformation

IDC predicts that AI will reshape manufacturing workforces through continuous human-robot learning and personalized training, reducing downtime and accelerating skill development.

Workforce strategy is now inseparable from AI strategy. Within the next few years, AI agents will be embedded in a significant share of manufacturing roles. “Manufacturers that can capture this tacit knowledge as part of their overall supporting, synchronous data model will have an advantage,” Hojlo says.

Downtime considerations further elevate the importance of simulation. “There cannot be downtime in production, as this is too expensive,” Hojlo says, driving increased use of “simulation and digital twins to model the use of new technologies and decisions before they are made.”

EXPLORE: How experts predict workplace technology will evolve in 2026.

Security, Resilience and Ecosystem Collaboration

As AI embeds itself in OT cybersecurity, validation becomes critical. By 2029, IDC says, 75% of large manufacturers will use AI-powered cyber defense to detect threats faster and with less manual effort.

Hojlo says manufacturers must verify and validate AI-driven decisions using formal quality assurance processes, rather than relying solely on AI model outputs. Meanwhile, ransomware continues to pose a significant risk, frequently exploiting legacy systems and phishing attacks.

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